mlq on retail banking module e caiib

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IMP MLQ (MCQ DESINGED BY MR M L MEENA) ON RETAIL BANKING MODULE-E

ADDITIONAL READING MATERIAL ON HOME LOAN

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MLQ1-Loan origination not refers to-

1.Information acquisition,

2.Credit appraisal and sanction,

3.Disbursement.

4.Repayment

MLQ2- This is an important phase in the origination cycle as decisions made here affect the health of the portfolio.

1. Credit appraisal and sanction

2. Disbursement.

3. FOLLOW UP AND RECOVERY

4.NOTA

MLQ3-IN CASE OF Check-off facility WICH IS FALSE-

A. There will be an irrevocable letter of authority from the borrowers for deducting a specific amount of monthly instalment from

his salary/wages. B. In case of Government officers, who themselves are drawing and disbursing authorities and take housing loans, a letter of undertaking from them is sufficient.

C. Where check-off facility is not available to the bankers, post-dated cheques should not be obtained.

D. In case of Government officers, who themselves are drawing and disbursing authorities and take

housing loans, a letter of undertaking from them is sufficient.

MLQ4.In case of cheques received unpaid from the paying banker for want of sufficient funds, the borrower should be

immediately contacted. The cheque should be re-presented within a period of -------- days of its having been returned unpaid

with written request from the borrower.

1.7

2.3

3.30

4.15

MLQ5- When a cheque is dishonoured, the bank has to give a notice in writing to the drawer within ------- days of the receipt of

information by it from the finance institution regarding the return of the cheque.

1.7

2.3

3.30

4.15




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MLQ6-If drawer fails to make the payment of the said amount of money to the Bank within 15 days of the receipt of the notice mentioned in MLQ4, A complaint should be filed before Court, within --------DAYS from the date of cause of action.

1.7

2.3

3.30

4.15

MLQ7-Mr ML is from BUNDI Rajasthan working in OBC bank at KARNAL want to purchase a house at KOTA by taking

housing loan under staff HL scheme, Under simple registered mortgage, the Deed of Mortgage is required to be registered

with the…. sub-Registrar/Registrar

1. Kota

2. Bundi

3. Karnal

4. Depent on Mr. ML and his bank.

• MLQ-8 In MLQ7 he cross check the Encumbrance Certificate for ------ years showing nil encumbrances and Parent

Documents of ------years.

• 1.30,13

• 2.13,30

• 3.13,13

• 4.30,30

MLQ9-FALSE IN CASE OF Priority of Charge

1. Where a mortgagor creates more than one equitable mortgage over the same property in favour of two financing

institutions, the institution in whose favour the mortgage is created first, has priority of charge.

2. Where a mortgagor has created separate registered mortgages over the same property in favour of two or more

financing institutions, the priority of charge will be determined with reference to the date of the execution of the

deeds which has been duly registered within four months of execution (not the date of registration).

3. Where a mortgagor gives the same property in equitable mortgage to one financing institution and in registered

mortgage to another financing institution, the priority of charge will be determined with reference to the date of

deposit of title deeds in equitable mortgage and the date of execution of registered mortgage deed. An equitable

mortgage in no way gives inferior rights compared to a registered mortgage.

4. NOTA

MLQ10-A suit for foreclosure must be filed within -----years/months from the day the mortgage money becomes due.

1.3M

2.30M

3.3Y

4.30Y




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MLQ11- The credit rating should be reviewed ----(IN CASE OF HOME LOAN)

1.MONTHLY

2.QRTLY

3.HY

4.YRLY

MLQ12- Power of attorney should be –

1.notarised

2.registered

3. notarised and registered

4. notarised or registered

MLQ-14. Interest on housing loan can be claimed as a deduction from income from property, salary, business/ profession, capital

gains, or any other source upto a maximum of Rs. 1,50.000 under section 24(b) of the Income-tax Act, 1961 every year subject to

fulfilment of the following conditions-FIND FALSE ONE

(a) Loan has been taken on or after 1st April 1999.

(b) Loan is for purchase or construction of a residential property or as re-finance (takeover) of the principal amount outstanding

under a loan taken earlier for purchase or construction of a residential property. However, in case of loan for construction,

the construction should get completed within 3 Years of raising the Loan. Deduction can be claimed only from the financial

year when the purchase/ construction is completed.

(c) The lender issues a certificate at the end of the financial year mentioning therein the interest & principal paid during the year

in respect of that loan.

(d) If any of the first 2 Conditions mentioned above is not satisfied, i.e., loan was taken before 1st April 1999 &/or loan is for

repairs/renovation/reconstruction, deduction of only up to a maximum of Rs. 100,000 every year can be claimed. The third

condition mentioned above, however, has to be satisfied.

MLQ-15 CLICK ON ODD ONE

1. No Tax Benefit is available in respect of Loan taken for purchase of plot of land. Hence, instead of taking a Loan for purchase

of plot, he/she should take loan for purchase of plot as well as construction of house & complete construction of a self-sufficient

House within 3 Years of raising the Loan.

2.If Loan is raised jointly by husband & wife or any other combination of persons acceptable to the lender, the interest &

principal can be claimed by the co-borrowers in proportion to the amounts paid by them, subject to the combined maximum limit

of Rs. 1,50,000 (or Rs. 30,000) & Rs. 1.00.000 towards interest & principal respectively.

3.If the housing loan is taken before 1st April, 1999, deduction on account of interest shall be limited to Rs. 30,000 every Year.

However, if the loan is taken after 1st April, 1999, deduction of interest upto Rs. 1,50,000 can be claimed every Year.

4. As regards principal repayment, it can be claimed as a deduction from the gross total Income only by an Individual/HUF

borrower under section 80C of the Income Tax Act, 1961 cannot exceed Rs. 1,50,000




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MLQ-16.In India, mortgage advice profession should follow the guideline of-

1.RBI

2.SEBI

3.CONCERN BANK/BRANCH

4. no regulations

MLQ-17. If Rs. 100000 is invested for a period of 5 years at interest at 10% p.a. find the maturity sum i.e. future value-with the

help of Future value table given below Hint (Future value = PV x future value factor) Year 7% 8% 9% 10% 11% 12%

1 1.07 1.08 1.09 1.10 1.11 1.12 2 1.14 1.17 1.19 1.21 1.23 1.25 3 1.23 1.26 1.29 1.33 1.36 1.40 4 1.31 1.36 1.41 1.46 1.51 1.57 5 1.40 1.47 1.54 1.61 1.68 1.76 6 1.50 1.59 1.68 1.97 1.87 1.97

1.16000

2.161000

3.171000

4.181000

MLQ18- future value of annuity due of Rs. 1000 for a period of 5 years at interest rate of 5% would be

HINT- Future value of annuity = Annuity x CV factor

Annuity table Year 7% 8% 9% 10% 11% 12%

1 1.00 1.00 1.00 1.00 1.00 1.00 2 2.070 2.080 2.090 2.100 2.110 2.120 3 3.215 3.246 3.278 3.310 3.342 3.374 4 4.440 4.506 4.573 4.641 4.710 4.779 5 5.751 5.867 5.985 6.105 6.228 6.353 6 7.153 7.336 7.523 7.716 7.913 8.115

1. 5801.91

2.5750.30

3.52368.12

4.59250.41]

• MLQ19- CLICK ON ODD ONE-

1.Ordinary Annuity : Payments are made/received at the end of each period.

2. FV = PV( 1 + r)n




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Where PV means present value, 1 means one rupee, r means rate of interest and n means period or term.

3.2.Annuity Due : Payments are made/received at the beginning of each period

4. Present value = FV x CV factor

MLQ-20 Short term capital asset means a capital asset held for less than ---- months immediately prior to the date of transfer and

Long term capital asset means a capital asset held for more than ---- months immediately prior to the date of transfer.

1.36,12

2.12,36

3.36,36

4.12,12

MLQ21- Any profit or gain from sale or transfer of a capital asset is chargeable to tax under the head "capital gains" Capital asset means any property whether movable or immovable, tangible or intangible. Transfer, in relation to capital asset, includes sale, exchange of the asset. , however,

The following assets are NOT excluded from the definition of capital assets:

(a) Stock-in-trade, stores, raw material (b) Personal effects (excluding Jewellery) (c) Agricultural land outside the limit of municipality or notified area.

(d) NOTA

MLQ22- Any document other than a will has to be presented for registration within---- months from the date of its execution.

The term 'execution' means signing of the agreement. Under the present rules and regulations, all agreements in respect of a

transfer of a immovable property have to be duly stamped.

1.1

2.2

3.3

4.4

MLQ23- Valuation is a specialized area practiced by qualified engineers and architects who possess knowledge of building

costs, awareness of market conditions and economic trends, developmental plans, legal statutes and provisions governing real

property, rental income and outgoings etc. The Valuer is required to collect data on aforesaid aspects but as the information is not

easily accessible and/or authentic particularly about demand and supply, the Valuer has to rely on his own experience and

judgment in arriving at the fair market value! It is hence inevitable that there will be difference of opinion between two Valuers

in respect of the value of same property. Who grants registration to Valuers, on the basis of their technical background and

experience.

1.RBI

2.SEBI

3.IT DEPTT

4.SUB REGISTRAR




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MLQ24- This method of depreciation is generally adopted by industrial units because of advantage of lower income-tax

1. Written Down Value (WDV) Method

2. Straight Line Method

3. both

4. There are several methods to calculate depreciation, board of directors of company decides.

MLQ25- Reverse Mortgage Loan----CLICK ON FALSE ONE

1. The scheme was introduced in India in 2007 and made applicable with effect from April 01, 2008.

2. Reverse Mortgage Loan, seeks to generate income from the property owned and resided in by the senior citizens to enable

them to lead an independent and dignified life

3. A senior citizen who is above 60 years is eligible for a reverse mortgage loan against his own and self occupied residential

property.

4. Married couples will be eligible as joint borrowers subject to the condition that one of them is above 60 years and the other not

below 55 years.

5.The maximum period of the loan is 10 years. If the borrower outlives the maximum loan period, he/ she can continue to retain

the property and need not repay the loan or service the interest.